Amazon Advertising and GroupM are working together to help brands add Amazon audio ads to their media strategies. The audio ads are delivered on Amazon Music’s free ad-supported tier.
GroupM agency clients can reach listeners based on streaming activities and shopping signals across Amazon, and analyze campaigns with Amazon Advertising’s suite of measurement solutions that span the entire search-and-buy funnel.
One product points to voice actionable ads featured during breaks in playback. The ads serve up during the free tier or Amazon Music across Alexa-enabled devices, including Echo and Fire TV, as well as on mobile and desktop.
Amazon sold 16.5 million smart speakers and smart displays in the fourth quarter of 2020, followed by Google with 13.2 million, Baidu at 6.6 million, and Alibaba with 6.3 million. Apple came in the fifth slot with 4.6 million, according to Strategy Analytics.
The value of the U.S. smart speaker market is estimated to reach $19.6 billion, rising to $35.5 by 2025, according to Statista.
Amazon audio ads launched in 2019. Through 2020, the campaigns outperformed Kantar Norms, with 126% higher aided awareness, 189% higher brand favorability, and 277% higher purchase intent, compared to the digital audio industry average, according to the company.
There is still room for growth. Total U.S. digital audio listeners of streaming music and podcasts is estimated to reach 218.6 million listeners, according to eMarketer’s February 2021 data.
The agreement between Amazon Ads and GroupM focuses on brands connecting with audiences in what Amazon calls “screen-free moments.”
An Amazon spokesperson cited some of the benefits, including first-look access to new product features, beta opportunities and sponsorships, and the opportunity for brands to get involved in the development of innovative experiences and creative solutions such as voice actionable ads.
Those participating also will receive support from Amazon Advertising’s creative production services, and pricing efficiencies.